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Leadership and 'street smarts'

Horace M. Lukens IIIBy Horace M. Lukens III
taken from Evansville Business Journal, February 2008

Horace M. Lukens III recently retired as vice president of Jesse F. Stock Insurance, IN., in Evansville. He is an adjunct instructor in finance for the University of Southern Indiana College of Business.


In a delightful book titled "Robert's Rules of Disorder -- A Guide to Mismanagement," author Robert Maidment makes this statement: "Many people have a tendency to revere the new. What they fail to realize is that the new is always made up of the old."

Herein lies the crux of the dilemma for the small business owner. In exercising leadership in the small business, what does the owner keep from the "old" and embrace of the "new"?

The key to successful leadership is what I call "street smarts." Some would call it "walking around sense."

Many years ago, I had the opportunity to visit with the late Daniel F. Caldemeyer, president of National Furniture Manufacturing Co. here in Evansville, one of the many successful enterprises during the heyday of furniture manufacturing in this city.

I asked him for the key to his successful operation of his business. He replied: "Each day I go into the plant to talk with the folks on the line. They tell me what is really going on in my business. From them, I get the direction that I need to take to keep my business profitable." This incident is what I mean by "street smarts."

How does a small-business owner develop "street smarts" or "walking around sense"? Here are some ideas developed over my years of leadership in a small business:

  1. Avoid a devotion to personal prestige, power and money. Personal arrogance kills more small businesses than a lack of sales. When I first started in my family's business, my father told me "the minute you start thinking about the amount of money you will make from a particular sale is the minute you start going out of business."
  2. A successful leader doesn't engage in unprincipled self-promotion. Seeking personal publicity at the expense of your business sends a strong signal that you are not putting the mission of the business ahead of your personal goals. Rotary International has a great motto: Service Above Self.
  3. Leadership does not mean coming up with impressive strategic plans with no clue regarding their implementation. The small business owner must have a viable business plan in order to properly plan the conduct of the business at various stages of its development.
  4. Good leadership does not mean that the owner will force major change upon his or her associates without input from them. Leadership means consensus building.
  5. Impulsive decision-making leads to disaster. Leadership includes the ability to deliver thoughtful, balance and informed analysis to the problem at hand.
  6. An inclination toward inconsiderate and rude behavior toward one's associates will destroy morale and erode one's leadership in any small business.
  7. One of the great attributes of a leader is the ability to listen to the ideas of associates. Contempt for these ideas, openly displayed, will cause associates to start looking for other employment.
  8. A leader will emphasize achievement over activity.
  9. A leader will clear up any misunderstandings in communication with associates immediately.
  10. The leader has the ability to separate his or her bad behavior from his or her better qualities. In other words, the leader exercises excellent self-control.
  11. Leadership emphasizes the ability to motivate associates to work as a team. Teamwork equals success.

Leadership means encouragement to others. As Maidment puts it in the book quoted in my first paragraph: "There are three ways to reach the top of an oak tree -- (1) climb it, (2) sit on an acorn or (3) make friends with a very big bird.

 


     

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